Coinbase Fights Oregon's SEC-Like Lawsuit, Citing Regulatory Progress

Coinbase has issued a strong response to a new legal challenge from Oregon Attorney General Dan Rayfield. In a statement released on April 18, Paul Grewal, Coinbase’s chief legal officer, described the lawsuit as a “copycat case” that mirrors the recently dismissed lawsuit by the US Securities and Exchange Commission (SEC) against the exchange.

Grewal emphasized that the Oregon Attorney General’s office is essentially continuing the legal arguments that the SEC had abandoned. He stated, “The AG’s office made it clear to us that they are literally picking up where the Gary Gensler SEC left off.” Grewal criticized the state’s attempt to revive outdated legal arguments, asserting that these efforts defy public opinion, technological progress, and good governance.

Grewal’s statement underscored the potential disruption this lawsuit could cause to the bipartisan momentum in Congress aimed at creating a clear federal framework for digital assets. He argued that the lawsuit distracts from meaningful progress and risks delaying regulatory clarity, stating, “This is exactly the opposite of what Americans should be focused on right now. We’ve never been closer to bipartisan legislation for digital assets and this backward lawsuit does nothing to protect consumers or solidify American leadership.”

Coinbase also accused the lawsuit of being a political maneuver rather than a genuine effort to address consumer protection. The company described Oregon’s move as “obstructionist” and out of step with the broader shift toward balanced regulation. Despite recent legal victories at the federal level, Coinbase’s clash with Oregon highlights ongoing friction between crypto firms and state regulators.

While several states, including Vermont, Kentucky, and South Carolina, have chosen to drop similar lawsuits, Oregon appears to be taking a different approach. Coinbase reaffirmed its commitment to defend its customers and the broader industry, stating, “Coinbase customers in Oregon and elsewhere can rest easy, we remain business as usual in the state and we are prepared to see this case, like others, through as far as necessary. We do not and will never shrink from fighting injustice, and we will never stop standing up for our customers and the industry.”